Treasury bill refers to a kind of government bond issued by the state financial organ to make up for the imbalance of national treasury revenue and expenditure. Because the debtor of the national debt is the country, its repayment guarantee is the national fiscal revenue, and there is almost no risk of credit default, so it is the least risky credit tool in the financial market.
The shortest term of China's national debt is one year, while there are many kinds of national debt in western countries, which can be generally divided into four types: three months, six months, nine months and 1 year. The starting point of denomination varies from country to country. Treasury bills are bearer forms and can be transferred and circulated without endorsement.
Treasury bill rate is closely related to commercial bills and certificates of deposit. Treasury bond futures can provide hedging for other certificates when the income fluctuates. Strong liquidity. National debt has a broad secondary market, easy to change hands, can be realized at any time, and has a high reputation.
Brief introduction of treasury bills
Securities issued by the central government to make up for the lack of financial or treasury funds. Treasury bills first appeared in 1877, and were issued by the British Treasury in accordance with the Securities Law of the Ministry of Finance. The U.S. Treasury Department began to issue Treasury bills in accordance with the Second Free Bond Act in 19 17. Short-term financing bonds, with a term not exceeding 1 year, including five terms of 2 months, 3 months, 6 months, 9 months and 12 months. In at discount, the difference between the face value and the issue price is the interest income held by the buyer during the whole period. Generally, public bidding is adopted for auction, including regular issuance and irregular issuance. Most of the buyers are financial institutions such as banks and other large investment institutions, and they buy by bidding; Individuals and other small investors can also buy government bonds, mainly by bidding, that is, according to the average bid price of bidding. Treasury bonds take the form of bearer securities, registered securities and account book registration. Treasury bills are highly liquid. After the issuance, you can enter the bond market for trading, and the trading activities are carried out through securities intermediaries. Treasury bonds are guaranteed by government financial funds, with high reputation, strong liquidity and high yield, so they are the main target of securities investment and an important means for the central bank to intervene in the open operation of the capital market, accounting for a large proportion in securities transactions.
1982 version of People's Republic of China (PRC) * * * and treasury bills 1 yuan.
In China, starting from 198 1, according to the regulations of People's Republic of China (PRC) on treasury bills, the Ministry of Finance issues treasury bills regularly every year. China's national debt has a long repayment period, including 3 years to 10 years, and is not a short-term government securities. Due to the short term, low risk and strong liquidity of national debt, the short-term treasury bill rate is relatively low. Treasury bill rate is only higher than the call loan interest rate. In some western countries, the issuance of national debt is frequent and continuous. For example, in the United States, national debt is issued every week and expires every week, which is convenient for investors to choose according to their investment needs. Treasury bonds are usually issued at a discount, that is, the issue price is lower than the face value of treasury bonds, and there is no interest rate on the face value. When the national debt expires, it will be repaid by the government at face value. The issue price is determined by open competition among bidders, so treasury bill rate represents a reasonable market interest rate and sensitively reflects the supply and demand of funds in the money market.
National debt is the direct debt of the government and the lowest risk investment for investors. Many investors regard them as the best investment targets.
Although the interest rate of national debt is generally lower than that of bank deposits or other bonds, due to the exemption of income tax in debt interest, investment in national debt can obtain higher returns.
Through my introduction, I believe everyone has a certain understanding of what treasury bills are.
Characteristics of national debt
The reflection of the change of market interest rate
Treasury bill rate is closely related to commercial bills and certificates of deposit. Treasury bond futures can provide hedging for other certificates when the income fluctuates. Strong liquidity. National debt has a broad secondary market, which is easy to change hands and can be realized at any time.
great fame
National debt is the direct debt of the government and the lowest risk investment for investors. Many investors regard them as the best investment targets.
high income
Although the interest rate of national debt is generally lower than that of bank deposits or other bonds, due to the exemption of income tax in debt interest, investment in national debt can obtain higher returns.